The Monetary Authority of Singapore (MAS) has established a SGD $250m ($182m) in a fund targeting the FinTech space.
Financial Sector Technology and Innovation Scheme (FSTI 2.0) is the regulator’s second investment vehicle targeting the sector. Its goal is to support large-scale innovation projects and establish a stronger pipeline of talent in Singapore.
The regulator is offering a maximum of SGD $400,000 ($291,000) for a proof-of-concept grant, which is double to size of the grants offered in the first fund. MAS is also increasing the maximum funding support from 50% to 70% of qualifying project cost.
This increased funding support will enable financial institutions and FinTech firms to undertake larger-scale proof-of-concept projects, it claims. The aim is to encourage greater experimentation, development and deployment of innovative solutions.
MAS is also introducing a merit-based tiered funding system, with more capital being given to companies showing more merits. This system will be based on a voting system by an evaluation panel.
AI technology is of particular interest of the regulator and is increasing the amount of capital available to these projects. Companies developing AI and data analytics solutions can receive a grant of up to SGD $1.5m ($1m).
The regulator will co-fund existing innovation labs for new Singaporean hires and encourage the expansion of labs.
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